Men Who Don’t Work: When Did Economists Stop Being Wrong About the Economy?

By Cherrie Bucknor and Dean Baker

The 4.9 percent unemployment rate is getting close to most economists’ estimates of full employment. In fact, it is below many estimates from recent years and some current ones. Many policy types, including some at the Federal Reserve Board, take this as evidence that it’s necessary to raise interest rates in order to keep the unemployment rate from falling too low and triggering a round of spiraling inflation.

The argument on the other side is first and fore...